Key Points
- Bitcoin cash price struggled to remain in the bullish zone and moved below $500 against the US Dollar.
- There was a break below a major bullish trend line with support near $475 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is just holding the $410-420 support area, but remains at a risk of more losses.
Bitcoin cash price failed to gain pace against the US Dollar. BCH/USD broke a key support near $475 and now poised for more declines.
Bitcoin Cash Price Decline
This week we saw some positive moves in Bitcoin cash price above the $500 handle against the US Dollar. However, the price failed to maintain the bullish gains above the $520-500 levels and started a downside move. Yesterday, the price broke a key bullish trend line near $490 and recently it broke another major bullish trend line with support near $475 on the hourly chart of BCH/USD. It has opened the doors for further declines below $450.
The price also surpassed the 50% Fib retracement level of the last up move from the $300 low to $549 high. Therefore, there are high chances of further losses below $420 in the near term. The next support could be around the $400 level and the 61.8% Fib retracement level of the last up move from the $300 low to $549 high. On the upside, there is a bearish trend line forming with current resistance at $445.
As long as the price is below $445-450, it remains in the bearish zone. Selling rallies in the short term can be considered for a move towards $400.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now well into the bearish slope.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently in the oversold levels and attempting a recovery.
Major Support Level – $400
Major Resistance Level – $450
Charts courtesy – Trading View, Kraken
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